After several weeks of the grain markets falling, the past few days we began to receive buy signals in the corn, soybeans and wheat futures markets (basis March).

On 1/8/10 we received a sell signal in soybeans and followed by sell signals in corn and wheat on 1/12/10.

On 2/8/10 we received buy signals in soybeans and corn. This was followed with a buy signal in wheat on 2/10/10.

During this period corn fell about $0.55, soybeans fell $1.19 and wheat fell $0.71. The rallying dollar has been a driving force on the falling grain prices. As the U.S. dollar index had a breakout move on 1/19/10. We are now looking at a possible sell signal in the dollar index futures at least in the short term. If the dollar should continue to rally, it could cap the grains from moving higher.

Corn (basis March) has an initial resistance at $3.64 to $3.74. If the market should move higher we have a target of the move to $3.96 to $4.12. Corn has an initial support of $3.60 to $3.53.

Soybeans (basis March) has an initial resistance of $9.49 to $9.60. If the market should move higher we have a target of the move to $9.75 to $9.90. And a secondary target of $10.30 to $10.58. Soybeans have an initial support of $9.32 to $9.17.

Wheat (basis March) has an initial resistance of $5.05 to $5.30. If the market breaks above this level we have a target of the move to $5.42 to $5.48. Wheat has an initial support of $4.94 to $4.77.

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